volatility

A measure of a security's propensity to go up and down in price.

A volatile share is one which has a tendency to move violently through a deep share price range. Mathematically, this is expressed as the standard deviation from the average performance.

In general, high volatility means high unpredictability, and therefore greater risk. Numerous attempts have been made to incorporate volatility into pricing models, but the problem has always been that past volatility is not necessarily a good guide to future volatility.

Generally speaking, the higher the volatility of a share, the higher the price of option/warrants on the share will be.